The Federal Housing Administration (FHA) is extending moratoriums on foreclosure in Maui County, Hawaii, for borrowers with FHA-insured single-family mortgages. The extension comes as residents are still recovering from the wildfires that ravaged the area.
West Maui and Upcountry Maui residents have claimed over $1.3 billion in losses related to the wildfires, according to a report by The Honolulu Star-Advertiser. The extension of the foreclosure moratorium affords borrowers additional time to consult with their mortgage servicers and housing counselors to access federal, state, and local housing resources without having to worry about impending foreclosure action.
“When I visited Maui in September, I saw firsthand the damage inflicted by the devastating wildfires. The people of Maui are resilient, but they will need support for years to come to rebuild and recover,” U.S. Department of Housing and Urban Development (HUD) Deputy Secretary Adrianne Todman said. “With today’s announcement, we are assuring homeowners in Maui that HUD is here to support them as they navigate next steps with their family.”
The moratorium was initially set to expire on Nov. 8. FHA’s actions have extended it to May 6, 2024. FHA also extended the deadline for servicers to perform certain legal actions related to foreclosure an additional 180 days following the end of the foreclosure moratorium.
“We remain committed to doing everything we can to help the residents of Maui as they begin to rebuild their homes and lives,” Federal Housing Commissioner Julia Gordon said. “The last thing any FHA borrower there should have to worry about right now is foreclosure.”
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